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Global spend on AI for network orchestration to reach $20bn by 2028
Fri, 16th Feb 2024

Juniper Research, an analyst in the telecommunications markets, has disclosed that global spending by network operators on Artificial Intelligence (AI) for network orchestration is projected to hit $20 billion by the year 2028. This marks an impressive rise of 240% from $6 billion in 2024.

These findings suggest that the growing usage of cellular networks by enterprises, including applications in smart manufacturing and autonomous vehicles, will necessitate further investment in AI. This technology would automate significant network processes that underpin such novel use cases, which demand high throughput, low latency, and expansive geographical coverage.

Therefore, in order to optimise network efficiency and curtail operational expenditure, the report encourages operators to speed up the integration of AI within their core networks.

The research highlights the importance of AI investment in bolstering network performance and security. As network operators extend existing 5G networks and forge ahead with future 6G networks, AI is pegged to assume an indispensable role. The report identifies that performance optimisation and network security rank as the crucial drivers of this push for AI, accounting for over 50% of projected global operator spend on AI by 2028.

Moreover, the rising virtualisation of network functions and increased demand for cellular data foretell operators' need to utilise AI in curtailing operational costs. The report submits that real-time network analysis and the dynamic adjusting of network conditions, made possible by AI, will be pivotal to minimising expenses associated with network management and service provision.

The research author, Frederick Savage, shared his insights on the findings: "As operators compete on the quality of their networks, AI will be essential to maximising the value of using a cellular network for connectivity. High-spending users will gravitate to those networks that can provide the best service conditions."

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